Metals and metal products rank second insignificance among Russian export commodities. Their share in the total exportsto non-CIS states continued to decline in 2001 and accounted for 15.3% (in 2000it made up 18.0%, and in 1999 - 22.2%). The exports value of metals and metalproducts fell by 18% due to the reduction of both average prices and tradevolume. The export volume of ferroalloys dropped by 12%, of rolled stock - by23%, of copper - by 8%, of nickel - by 5%, and of aluminum - by 4%. Pig ironmade the only exception in this group of commodities: its exports grew by 63%due to the increasing volume, and by 8% due to the increasing prices.

The export of plant and equipment went upby 10%, and the share of these commodities in the total exports to non-CISstates accounted for 8.6% against 7.5% in 2000.

Chemical products made up 6.8% of exportsto non-CIS states (in 2000 their share was 6.7%). As compared to the previousyear, the value of these exports remained practically unchanged. The actualexports of natural fertilizers grew by 6%, and the exports of synthetic rubberwent up by 4%. The exports of ammonia declined by 5%, and of methanol - by 9%.

The upward tendency in the exports of woodand pulp-and-paper products, which crystallized in 2000, remained stable. Theexports value grew by 6%, and the share of these commodities in the totalexports to non-CIS states made up 5.0% (in 2000 it accounted for 4.5%). Thevolume of lumber exports rose by 22%, the volume of plywood exports grew by 5%,and pulp exports went up by 4%. The supply of lumber and newsprint paper didnot undergo any significant changes.

Figure 47

The commodity composition of Russianexports (%)

Data source: the Goskomstat ofRussia.

The value indices of Russian exports stillremain firmly linked to the primary markets conditions and follow the fluctuations of the fuel prices.Since the fuel market conditions are unlikely to change drastically in 2002 (on thecontrary, the average oil and gas prices are expected to go below the 2001level), the exports maybe expected to decline.

Russian imports, by contrast to exports,were demonstrating a steady growth. In 2001, the imports from non-CIS statesaccounted for $40.3 bln., or a 28.1% increase as compared to the relevant period in 2000. Following aslight deceleration in the 3rd quarter,the imports escalated in October, reaching the record level since August 1998. Theprincipal driving force behind this process was the growth of the real incomesof individuals, which inOctober rose by 9.7% as compared to the same period the year before. The growthof imports was impeded bythe slackening of the ruble position, whose real value appreciation hasrecently started to lose momentum.

Russian imports from non-CIS states havegrown in almost all of the commodity groups, including the two staple articles - plant andequipment, as well as food products and primary goods for their manufacture, whose share in thetotal imports made up 61%.

Figure 48

The commodity composition of Russianimports (%)

Data source: the Goskomstat ofRussia.

Plant and equipment held the top positionin the imports from non-CIS countries in 2001. Their share in the total importsfrom said countries amounted to 37.2%, as compared to 36.3% in 2000. Theimports of food products and agricultural resources grew against 2000 by 34%.The purchases of chemical products in 2001 rose by 30%, and their specificshare in the total imports from non-CIS countries insignificantly decreased to19.9%. Within that commodity group, one should mention the mounting imports ofpharmaceutical products, which have risen by 43.1%.

Table 37

The dynamics of the volume of stapleimports from non-CIS states

1994

1995

1996

1997

1998

1999

2000

2001

Piping and tubing, thou.t

631

367

385

239

154,1

366,6

269,8

282,2

Plant andequipment, mln. USD

10696

12804

10172

13511

12789

7881,7

8028,0

11201,8

Pharmaceuticalproducts, mln. USD

1184

969

1083

531

1198

763,0

1089,6

1559,7

Textile andknitwear, mln. USD

861

511

298

313

211,9

89,0

105,7

242,2

Footwear, mln.pairs

41,7

26

45,8

15,4

2,9

1,2

2,8

7,7

Freshly frozenmeat, thou.t

358

506

540

694

595,8

806,8

340,4

716,2

Freshly frozenpoultry, thou.t

496

824

748

1117

814,1

234,8

677,1

1334,2

Raw sugar,thou.t

1081

1166

1680

2511

3002,9

5774,2

4546,6

537,4

Alcoholic and non-alcoholicbeverages, mln. USD

695

1017

379

700

390,4

145,6

170,3

240,0

Data source: the Goskomstat ofRussia.

At the end of 2001, the surplus of tradewith non-CIS countries accounted for $47.5 bln., or by 20.8% less than during the same period theyear before. The reduction of the trade surplus to the record minimal valueover the past two years was caused by a significant deceleration of the exportsgrowth accompanied by the ever-increasing imports.

Foreign trade relationsbetween Russia and CIS states

The year 2001 marked the tenth anniversaryof the Commonwealth of Independent States, and that allows for the conclusionthat the period of adaptation is over, that the economies of the CIS countrieshave completed reorientation towards new forms of cooperation basing on marketrules and procedures, and that the economies of Russia and the other CIS statescannot develop independently of one another.

The total volume of foreign trade betweenRussia and CIS states in 2001 accounted for $28.43 bln., including the totalexports of $15.31 bln. and imports of $13.12 bln.

Table 38

The dynamics of foreign trade betweenRussia and CIS states in 2001

2000 год

2001 год

Commodity turnover (bln. USD)

27,9

28,43

Exports (bln. USD)

14,6

15,31

Imports (bln. USD)

13,3

13,12

Balance of trade

1,3

2,19

Growth rates (%)

24,0

1,9

Share of CIS state sin total commodity turnover(%)

18,6

18,2

Data source: the RF Central Bank

The tendency of the positive reciprocalinfluence of economic growth in the CIS states and of the intensifying foreigntrade activities, which was typical of 2000, slowed down in 2001. For instance,in 2000 the growing Russian economy and the increasing demand from Russianenterprises boosted the imports from the CIS states by almost 30%, while in2001 the imports dropped by 3%.

Nevertheless, in 2001 the growth ofindustrial production in the neighbouring states, averaging 9%, was conductiveto the expansion of the mutual trade relations. The highest production growthrates were registered in Kazakhstan and Moldova, and the trade turnoverbetween Russia and these countries in 2001 amounted respectively to 8% and 10%.Byelorussia, Ukraine and Kazakhstan still remain Russia's largest commercialpartners, although the past year saw a significant escalation of bilateraltrade between Russia and Armenia (by 82%) and with Georgia (by 25%).

Exports. Russianexports to the CIS states in 2001 increased by 7.5%. The export of fuel accounted forless than 40% of the total Russian exports, which is indicative of progressivetendencies in the exports structure. This conclusion is confirmed by theexpanding export of plant and equipment, which slightly exceeded the last yearlevel and accounted for 17.3 %. The share of chemical products and metals hasalso risen.

Table 39

Export of specific commodities to the CISstates in January-November 2001